This study aims to examine the method of al-wasatiyyah by al-Qaradhawi in understanding the hadith especially in relation to the Faith (aqidah) and Worship (ibadah), to curb the extreme understanding of hadiths. The present study follows a qualitative methodology by focusing on al-Qaradhawi's works In the filed of hadith which specifically study the concept of al-Wasatiyyah in the understanding of hadith.This study concludes that the concept of al-wasatiyyah introduced by al-Qaradhawi also presents an approach in understanding the hadiths of Rasulullah (pbuh). The approach put forward by al-Qaradawi is also in line with the hadith scholars’ approach related to Fiqh al-Hadith. The study also concludes that the understanding of the hadith in the wrong approach can lead to extremism. This study has shown that the al-wasatiyyah concept introduced by al-Qaradawi is an important foundation in curbing extremism, especially the misunderstanding of the proponents of Islamic law such as the Quran and Hadith in modern times.